Preferred Shares are safe

Discussion in 'Wall St. News' started by stock777, Sep 10, 2008.

  1. lol, did you ever believe that ?

    Apparently some very highly paid clowns did, and they are bleeding large after the FRE FNM collapse.


    Beware the names they give them


    Preferred

    Trust

    Prime


    I substitute the word 'dogshit' for those when I see them, to put them in proper perspective.
     
  2. There was a strong belief that preferreds would be safe as many regional banks had significant amounts of capital invested in them. I guess we'll just see more bank failures. No doubt some smaller, undiversified banks get slaughtered due to the FNM, FRE bailout. I'm well aware that the Fed is willing to help... unless they give them free $$$, those banks are going to fail.
     
  3. I understand at least some were 'perpetuals'. No maturity, kind of like the guys running Wall St. Trading at 20c on the dollar. Lots of well off retail guys killed.

    So, if you were wealthy, and went into any of these 'wealth management ' divisions, you got a slug of ARS' and GSE pfds. Ok, there's your income. Wonder what they recommend for growth?
     
  4. just buy the senior debt and not the subordinated debt and you will be much better off.